Vijay Shanthi will increase land bank to Rs 200 cr

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Vijay Shanthi will increase land bank to Rs 200 cr

ED at Vijay Shanthi Builders, Naresh Jain says, his company's land bank is worth Rs 140 crore at present and plans to increase it to Rs 200 crore by March 2007.

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » ALSO READ See latest News about Vijay Shanthi See previous management interviews See what other Experts & Brokerages are saying about Vijay Shanthi Vijay Shanthi BSE | NSE 30/05/12 Are Mutual Funds betting on Vijay Shanthi?

ED at Vijay Shanthi Builders , Naresh Jain says that his company's land bank is worth Rs 140 crore at present and plans to increase it to Rs 200 crore by March 2007.       

Excerpts from CNBC-TV18's exclusive interview with Naresh Jain:

Q: Tell us a little bit about your business. What sort of land do you hold and what sort of development plans do you have?

A: Vijay Shanthi Builders is basically into residential housing; we construct residential flats. Our land bank is worth Rs 140 crore at present, which we plan to increase to Rs 200 crore by March 2007. This land bank, when converted into a project, will be worth Rs 750 crore at present, which will ultimately increase to Rs 1000 crore by March 2007.

Q: Could you give us the completion targets of the Chennai, Salem and Udaipur properties? What is the kind of cash flows you expect from the projects and by when?

A: The project bank is of 33-lakh sq ft divided into 16 projects. There are few projects, which may get completed in a year, while another few may take 2 years; the maximum time taken will be 3 years. Hence the total cash generation will be done in 3 years. The Salem and Udaipur project will start after 6 months and will take another one-and-a-half year to get completed.

Q: For FY '08 and more importantly FY '09 what do you think you might deliver in terms of revenues and profits?

A: For FY '08, we plan to achieve a turnover of Rs 220 crore with profits around Rs 22 crore and for FY 09, it will be somewhere close to Rs 400 crore with Rs 45 crore profit.

Q: When was this Rs 140 crore of land acquired and at what cost and where are you acquiring the new bits of land, which will take up your overall land bank?

A: It is a continuous process. So we keep acquiring lands and announcing projects. This particular land worth Rs 120 crore, spread over 16 projects, has been acquired in the last 6-8 months. The current market value of these projects is somewhere close to Rs 190-200 crore and the additional land bank may be acquired particularly in Chennai; they will be spread on the outskirts as well as within the city.